The Ghana Statistical Service reported that prices increased by only 0.2 percent from December, reflecting broad-based moderation in both food and non-food categories. Food inflation slowed to 3.9 percent, while non-food prices recorded a 0.4 percent decline compared with the previous month.
The softer inflation outcome comes on the heels of a major policy shift by the Bank of Ghana, which last week cut its benchmark interest rate by 250 basis points to 15.50 percent. The move was aimed at supporting economic growth while maintaining the progress made on price stability.
Analysts attribute the continued disinflation to several factors, including:
- A stronger cedi, which has reduced the cost of imports
- Lower global import prices, particularly for fuel and commodities
- Improved food supply, driven by better domestic harvests
- Tighter monetary policy over the past year
- Fiscal reforms linked to Ghana’s IMF programme, which have helped restore macroeconomic stability
The relative stability of the cedi has also eased the cost of key household items such as fuel, transport, and imported goods, while falling global commodity prices have helped temper food inflation—a major component of consumer spending.
Ghana, a leading producer of gold and cocoa, is gradually emerging from one of its most severe economic crises in recent history. The crisis, characterized by soaring prices, debt restructuring, and an IMF-backed recovery plan, placed significant strain on households and businesses.
With inflation now trending downward, consumers may feel some relief, and businesses may benefit from improved pricing predictability. However, policymakers have signalled that they will remain cautious to ensure that inflation remains under control as the economy stabilises.